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In construction industry, the conformance cost associated with preparing work instructions and checklist, drafting specifications, training of staff and workmen is classified as
- a)Prevention cost
- b)Appraisal cost
- c)Failure cost
- d)Inventory cost
Correct answer is option 'A'. Can you explain this answer?
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In construction industry, the conformance cost associated with prepari...
Types of costs of Quality:
Prevention Costs:
Prevention Costs:
- These are costs related to all activities to prevent defects from occurring and to keep appraisal and failure to a minimum.
- These costs include the new product reviews, quality planning, supplier surveys, process reviews, quality improvement teams, education and training.
Appraisal Cost
- The appraisal costs are those costs that occur because of the need to control products and services to ensure a high-quality level in all stages, conformance to quality standards, and performance requirements.
- They do not reduce the number of errors, but they reduce the number of errors that reach the customer.
- These costs include first-time inspection, checking, testing, process or service audits, calibration of measuring and test equipment, supplier surveillance, receipt inspection, the cost for evaluation of the business, etc.
Failure Cost
- The failure costs are the costs resulting from products or services not conforming to the requirements of the customer. They are further divided into internal and external failure costs.
The internal failure costs
- These are the costs caused by deficiencies found before the delivery of products and services to external customers, which otherwise would have led to the customer not being satisfied.
- Such costs can include costs for rework, delays, redesign, shortages, failure analysis, retest, downgrading, downtime, lack of flexibility and adaptability, poor competence, and poor management.
The external failure costs:
- These are the costs caused by deficiencies found after the delivery of products and services to external customers, which lead to customer dissatisfaction.
- These can be costs for complaints, repairing goods and redoing services, warranties, and extra costs for customers.
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In construction industry, the conformance cost associated with preparing work instructions and checklist, drafting specifications, training of staff and workmen is classified asa)Prevention costb)Appraisal costc)Failure costd)Inventory costCorrect answer is option 'A'. Can you explain this answer?
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